Government yet to decide on extending sugar export subsidy

The government is yet to take a call on extending the subsidy on raw sugar exports for the 2014-15 marketing year that started in October, Food Minister Ram Vilas Paswan said here Thursday.

"No decision has been taken as of now to extend the export subsidy," he told reporters.

Paswan added that the status quo remains as far as subsidy is concerned.

The Centre had announced subsidy for exports of raw sugar up to 4 million tonnes in February 2014 in order to help the industry clear sugarcane arrears to farmers. The scheme for this subsidy ended in September.

The Centre had decided to review the quantum of subsidy every two months. It was originally fixed at Rs.3,300 per tonne for February-March.

Subsequently, the incentive was reduced to Rs.2,277 per tonne for April-May. It was again reinstated at Rs.3,300 per tonne for June-July. For August-September, the subsidy was increased to Rs.3,371 per tonne.

The minister added that the total sugarcane arrears to farmers till Nov 18 this year have come down to Rs.4,300 crore from Rs.14,095 crore in end-May.

India exported 7 lakh tonnes of raw sugar in the 2013-14 marketing year (October-September) under the export incentive scheme.